US Flag EN
ripple xrp price prediction

Bitcoin: Advantages & Disadvantages of Cryptocurrency

Bitcoin is a digital money system that was launched back in 2009.

Advantages

  1. Bitcoin is not controlled by the government. In 2010, the founder of the first cryptocurrency, Satoshi Nakamoto, left the project and handed over its future fate to unknown developers.
  2. Low-cost transfers worldwide. The distance does not matter for changing the transfer fee. If a bitcoin transaction to anywhere in the world can take up to an hour, then a transfer, for example, using Western Union, will take several days, and the fees may significantly exceed the amount of the shipment.
  3. Bitcoin is not afraid of inflation. Since the number of coins of this cryptocurrency is invariably 21 million, and the US dollar does not limit the number of banknotes produced. On the contrary, the supply will decrease in the market, thereby increasing the price of the virtual currency.
  4. Replacing gold as a way to save capital. Bitcoin has been dubbed "Digital Gold" for a reason. Many analysts of investment companies are convinced that in the next 20 years, investors will keep their funds in bitcoin, because its price will only grow. And precious metal reserves are large and difficult to transport and divide.
  5. Anyone can trade. You don't need to have any special knowledge or education. All you need to do is register or create an electronic wallet. However, there is a risk of losing your investments on blind investments, as happened in 2018 with the XRP token. Initially, the auction was priced at $3.4, but now this coin is worth less than a dollar.
  6. Decentralization. Bitcoin does not have a single governing body. This is both a plus and a minus.
  7. Tax-free storage. The great advantage of virtual currency is that it is tax-free, which makes it possible to store your own funds in an electronic wallet without loss.

Disadvantages

Owners of cryptocurrencies should be extremely careful, since it will be impossible to restore access to their wallet, and an error in entering transfer data can be considered fatal, since it is possible to return funds only if the recipient himself returns them to the sender's account.